A partnership between Titan Development’s senior living arm and LCS has 10 senior living projects lined up in three states, with an estimated $266 million price tag.
Those projects will break ground in stages, says Titan Senior Living president David Dronet, with a new community expected to break ground roughly each quarter.
Five of the communities are in Texas, three are in Florida, and two are in New Mexico.
“We spend a lot of time doing demographic research,” Dronet says. “Basically what we’re trying to do is figure out where our prospective tenants already live and take our services to them in their community.”
The two segments of the population that Titan Senior Living typically targets are its prospective resident base—people around age 80 with an annual income of $35,000 or more—and the 55-65-year-old adult daughters, who generally serve as the primary decision makers for their aging parents.
“We keep both those groups in mind when we’re making decisions on design, location selection, and service and amenity offerings,” says Dronet. “We’re not just looking to satisfy the basic needs for residents, but rather satisfy ch more than they’d expect and make the lives of their families and caregivers easier.”
Most of Titan Senior Living’s projects are a combination of assisted living and memory care, although two communities in the current pipeline will also include independent living.
The Titan/LCS venture typically follows a broad prototype that fluctuates depending on local requirements. The developer primarily targets around 110-120 units total, comprised of around 36 memory care units and 70-80 assisted living units. The two larger developments will also have 120-200 units of independent living in addition to the assisted living and memory care units.
Each project varies in cost, but the typical assisted living and memory care community costs around $22 million, while a community with the independent living component will cost closer to $45 million.
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LCS has been working with Titan Development for the past six years in various capacities, including co-developer and operating and investment partner.
The joint venture uses bank debt to cover the majority of capital costs on any given project, says Dronet, and fund the remainder with equity from LCS and Titan Senior Living.
Titan Development has done around $1 billion in real estate development in the last 15 years across asset classes such as senior living, multifamily, and retail.
“Senior living is definitely a growing focus for us, and it’s been my focus exclusively for a number of years,” says Dronet. “Titan Development is now heavily invested through the senior living division.”
Written by Alyssa Gerace